NICVA hosts Secretary of State and Treasury for Corporation Tax debate

The key issue in the Government consultation paper is the proposal to devolve the power to vary corporation tax to the Northern Ireland Assembly. The meeting was also attended by senior officials from DETI and DFP.

Commenting on the seminar Seamus McAleavey, NICVA Chief Executive said:   

“The debate on varying the rate of corporation tax in Northern Ireland forms part of a bigger conversation on rebalancing the Northern Ireland economy and  NICVA is extremely pleased to be the first organisation to bring the Secretary of State, senior officials from HM Treasury and the Northern Ireland Executive together to publicly discuss Northern Ireland’s economic future.

“Northern Ireland is entering a crucial period; we are facing serious fiscal contraction coupled with welfare reform and a lively economic policy debate; this is all occurring as we struggle out of serious recession."

The audience today heard from the Secretary of State, the Treasury and DETI and there is an understanding of the need to rebalance and grow the Northern Ireland economy. In light of the limited local policy levers, NICVA welcomes the role the Treasury has taken in trying to implement a ‘game changer’ in our economic performance.

Importance and value of the sector

Seamus went on to comment on the potential benefits, but was mindful that the process should be inclusive and that the importance and value of the sector didn't go unrecognised.

“Is reducing Corporation Tax the answer? There are clear costs and significant potential benefits however; we want to be convinced that any reform is based on the right principles and will deliver positive outcomes for everyone in Northern Ireland.

“NICVA has a keen interest in making any economic reform as inclusive, sustainable and equal as possible, ensuring that it creates jobs, protects the most vulnerable and empowers those who are currently excluded. The importance and value of the voluntary and community sector must also be fully recognised.

“To sustainably reform our economy we must meaningfully address the other major challenges facing us – from delivering a genuinely shared future, to achieving an inclusive high performance education system, to reforming our public services - the Executive has a lot to do.

“Engaging in economic policy is crucial for the voluntary and community sector and it is for this reason that we have established a Centre for Economic Empowerment (CEE)  which aims to improve the economic analysis skills of the sector and to increase our capacity to influence future economic and fiscal policies."

The Centre for Economic Empowerment will help deliver an informed message of the need for a more sustainable and equitable economy and society. Having a dedicated platform for research, discussion, and capacity building will allow informed debate to take place and our voice to be heard.

The Seminar consisted of a number of presentations, a question and answer session and roundtable discussions on the key issues in the consultation.

The consultation on ‘Rebalancing the Northern Ireland economy’ is a UK wide consultation which closes on June 242011. You can download a copy of the consultation at: http://www.hm-treasury.gov.uk/consult_rebalancing_ni_economy.htm